Hard Times Now in Malaysia

The uncertainty of a General Election has caused reluctance of FDI into the country.

The removal of subsidies of diesel for commercial vehicles and boats of fishermen and the price increase of sugar and electricity recently have started a chain of inflationary events.

UPDATED June 6: Lorry operators will be increasing their rates by 20% to 30%. Fishermen will either increase significantly the price of their catch while they contemplate a stop fishing action protest. (Read here)

The Government wants us to believe the negligible impact they feel the economy will have. That’s plain baloney propaganda.

Consumer inflation has started to rise again. The actual impact is still not known as the costs increase are passed down to the end consumer.

Food and drinks and other consumer goods will go up further. Our disposable income has just been shrunk yet again.

Brace ourselves for a Ron 95 petrol and LPG price increase to happen very soon. That will trigger an unbelievable effect to diminish the Malaysian’s income to the maximum.

This will happen after the GE13 for sure as it is a certainty given the rise in global crude oil prices. The BN Government is playing for time but it is better sooner than later to recoup from subsidy cut.

Right after this will be GST that will haunt all Malaysians. This is aimed to increase tax revenue and collect it faster so that the Government has disposable income as opposed to the current stream of future collections.

While we don’t know of any other Government actions to curb excesses, leaks, corruption, etc and recover the unneeded IPP subsidies first, we the Rakyat will bear the biggest brunt of inflation running beyond our spending means.

This is a very sad picture painted. We urge for a change in Government spending, cut all possible excesses, recover all unfair subsidies and payments NOW!

It is not needed to turn Malaysia into a welfare state but a strong competitive and intelligent challenge on the global scene.